Port of L.A. Designated a Foreign Trade Zone

Despite opposition from its rival in Long Beach, the Port of Los Angeles was awarded foreign trade zone status Friday in a move that local officials hope will boost the region’s economic strength.

The designation by the federal government permits manufacturers, warehouses and other businesses located within the foreign trade zone to defer or avoid customs duties on imports and exports. That can lower operating costs and may encourage existing companies to expand or help attract new business to the area, said Karen Tozer, the foreign trade zone marketing manager at the Port of Los Angeles.

The new zone, one of more than 400 nationwide, includes nearly the entire Port of Los Angeles as well as sites at Los Angeles International Airport and a proposed trade and transportation center in Bakersfield. In addition, the port can expand its foreign trade zone to specific company sites anywhere in the greater Los Angeles area.

Local companies can gain the same benefits from the Port of Long Beach’s zone. However, “Long Beach has not promoted the foreign trade zone as actively as they could have,” Tozer said. “That’s why we wanted our own zone. We wanted to promote it and control its destiny.”

The neighboring Port of Long Beach opposed the creation of a rival zone because of the impact on its projects, said Gerry Haugan, the port’s leasing manager. Long Beach’s trade zone is scattered throughout the region and includes warehouse and manufacturing sites in Long Beach, Ontario and Santa Ana.

“We wanted to make certain the success of the existing zone and (that) the money we have put into it would not have been put at jeopardy,” Haugan said.